Technical Analysis

Dabur India on a strong footing

Yoganand D | Updated on December 16, 2018 Published on December 16, 2018

The medium-term uptrend will remain intact as long as the stock trades above ₹365

Here are answers to readers’ queries on the performance of their stock holdings.

I am a long-term investor in Dabur India. Can I purchase more shares at these levels? Please discuss the technicals for the medium to long term.

Rajeshwar Reddy

Dabur India (₹442.4): The stock of Dabur India is on a long-term uptrend across all time-frames. After a corrective decline from the new high of ₹490 recorded in August 2018, the stock found support at ₹360 in early November. Subsequently, it resumed its uptrend and has been on a short-term uptrend since then.


Underpinning the uptrend, the stock jumped 7.6 per cent last week, breaking above a key resistance at ₹420. Moreover, it has emphatically breached its 21- and 50-day moving averages in the previous week and trades well above them.

There has been an increase in daily volume over the past four trading sessions. Significant long-term support is pegged at ₹365. As long as the stock trades above this base level, the medium-term uptrend will remain intact.

Investors with a medium- as well as long-term perspective can buy the stock in declines, while retaining a fixed stop-loss at ₹360 levels.

Those holding the stock bought at a lower level can stay invested with a long-term stop-loss at ₹280. Key supports below ₹360 are placed at ₹340 and then at ₹300-310 band.

The short-term uptrend will be in place as long as the stock trades above ₹400 level, which is a vital base level to note.

But a fall below this support can drag the stock down to ₹385 and ₹365 levels. On the upside, the stock can face resistance at ₹470 and then at ₹490.

An emphatic rally above these levels can take the stock to new highs in the medium to long term.

The stock can touch ₹500 and ₹520 levels. Investors with a medium-term perspective can book profits at around ₹490.

I have shares of MRF. Should I hold or book small profit? What are the major support and resistance levels for the stock?


MRF (₹66,350.3): Since encountering a key resistance at ₹81,000 in late July, the stock has been on a medium-term downtrend. It found support at ₹61,000 in early October and began to trend up. This up-move was capped by a key resistance at ₹69,000 in late November and again in the previous week.

The stock faces difficulty in surpassing this barrier. You can book partial profits at the current levels. Inability to move beyond ₹69,000 can drag the stock down to ₹63,500 and then to ₹61,000 in the short term.


That said, a conclusive break above 69,000 can take the stock higher to ₹73,000 and then to ₹75,000. A strong rally above ₹75,000 will alter the medium-term downtrend and take the stock to ₹77,000 and ₹80,000.

On the downside, a conclusive fall below ₹61,000 — which is a major long-term support — will drag the stock down to ₹58,500 and then to ₹55,000 in the medium term. Next vital base is at the ₹50,000 level.

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Published on December 16, 2018
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